Multiple Choice
Stock A has a standard deviation of 20% and a correlation coefficient of 0.64 with market returns.The market risk premium is 12% with a standard deviation of 15%.The risk-free rate is 5%.What is the required rate of return of Stock A?
A) 8.58%
B) 10.95%
C) 12.47%
D) 15.20%
Correct Answer:
Verified
Correct Answer:
Verified
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